VTB Bank (Armenia) has joined the government program to refund income taxes of mortgage borrowers, the Bank's press-office told ArmInfo. The customers of VTB Bank (Armenia) who borrowed mortgage loans since November 2, 2014 to build or buy housing directly from a developer or as part of the government or community housing projects can request the certificate of the interests paid to the bank on mortgage loan to submit it to the document to the tax authorities. Afterwards, a customer can get back the income taxes paid for the mortgage loan. New customers that will borrow a mortgage loan from VTB Bank (Armenia) can also take advantage of the opportunity and get refunded for their incomes taxes in accordance with the procedures established by the Government of Armenia.
Under the renovated Law On Income Tax that came into effect on Jan 1 2015, the given privileges will cover all hired employees, private entrepreneurs or notaries. The compensations will be paid to hired employees once a quarter, while private entrepreneurs and notaries could claim it once a year.
According to the Financial Rating of Armenian Banks prepared by ArmInfo, the mortgage portfolio of the Armenian banks totaled 173.7 bln drams ($365.7 mln) as of Jan 1 2015 or 8% of total loans, with a 22.1% year over year growth and 12.1% growth for Q4. For comparison, in 2007 this indicator grew over twofold. In 2008, the growth rates slackened and made up 54.5%. In 2009 this indicator totaled 4.9%, in 2010 the growth accelerated to 6.4%, in 2011 - 22%, and again slackened in 2012 to 15% and in 2013 to 12%. VTB Bank Armenia is among top three banks in terms of mortgage loans. All the banks provide mortgage loans. Banks experts forecast a 10%-20% growth of mortgage loans in 2015 due to the Government's decision to refund the income tax of mortgage borrowers. The decision will boost also the housing construction, experts say.